Earlier, various local research houses issued positive recommendation on the IPO, said a press release.

National Bank of Oman (NBO) issued weighted average fair price of 180 baisas per share on the issue, followed by Global Financial Securities at 179 baisas, while United Securities came up with a fair value of 176 baisas.

During the course of the subscription, Oman Qatar Insurance issued audited financial results for the January-July 2017 period. OQIC earnings rose to OMR1.44 million, compared with OMR0.27 million during a similar period last year. Gross written premiums increased by 27 per cent in comparison to same period last year and stood at OMR16.6 million, while net underwriting results of the insurer rose to OMR1.59 million, resulting in growth of 158 per cent.

NBO valued the company on four different parameters. Its DCF-based fair price came out to be highest at 217 baisas, while its justified price to book value came out to be lowest at 169 baisas. “DCF-based price offers an upside of 35.6 per cent, while justified price to book value method offers an upside of 6 per cent. NBO estimates on an average the company’s fair price offers an upside of 12.5 per cent.”

Global Financial Securities valuing it on a dividend discount model and relative valuation came up with price of 191 baisas per share and 161 baisas per share, respectively, ending with a weighted average price of 179 baisas offering an upside of 12 per cent.

United Securities also supported the issue and recommended subscription to the IPO, saying OQIC is a medium-sized player in the market, focusing on property, engineering and liability lines, and enjoys strong support from the parent company. The company management forecasts generating an ROE of 15.5 per cent in 2018 (estimate), while the shares are being offered at par with the 2018 (estimate) book value.

Established in 2004, Oman Qatar Insurance Company (OQIC) is a subsidiary of Qatar Insurance Group, which has a global underwriting footprint spread across all continents. OQIC believes in delivering innovative retail solutions for home, travel and car insurances to every segment of its customer base. It also serves as a conduit in providing insurance services across the Gulf Cooperation Council and helps connect overseas insurance interests through its global network.

As of 2016, OQIC is a leader in liability insurance and ranks second in property insurance and holds sizable market in the motor segment as well. Apart from the above, the company is targeting the health insurance segment. Recently, it was announced by the Government that mandatory health cover for nationals and expats working in the private sector will be enforced from early next year.